2024-02-22T15:33:24-07:00 2023-05-31 990 2022-06-01 250965430 MERCYHURST UNIVERSITY MERC 8148242000 501 East 38th Street Erie PA 165460002 Michael E Heller Vice President of Finance and Admin 8148242032 2024-02-22 Michael E Heller 999009999 1 1 11 1 AAL2 2022 2023-04-26 12:10:37Z Michael Heller 501 East 38th Street Erie PA 165460002 177778379 0 X www.mercyhurst.edu X 1926 PA Mercyhurst University is a fully accredited, four-year, Catholic comprehensive institution founded by the Sisters of Mercy in 1926. The Erie (Pa.) campus offers sixty-five (65) undergraduate majors with seventy (70) minors, as well as unique adult programs and thirteen (13) graduate programs. 26 25 1744 250 61039 0 23421358 15961497 137827089 127164278 1321139 5958800 355391 252784 162924977 149337359 61642804 58923743 0 0 38901506 38680708 0 0 972071 57020134 53935497 157564444 151539948 5360533 -2202589 174010156 168302499 66822266 68210644 107187890 100091855 X Consistent with its Catholic identity and Mercy heritage, Mercyhurst University educates men and women in a culture where faith and reason flourish together, where the beauty and power of the liberal arts combine with an appreciation for the dignity of work and a commitment to serving others. Confident in the strength of its student-faculty bonds, the university community is inspired by the image of students whose choices, in life and work, will enable them to realize the human and spiritual values embedded in everyday realities and to exercise leadership in service toward a just world. 0 0 68261454 48867039 99400534 At the fall census date during the 2022-23 academic year there were 2814 students enrolled in undergraduate, graduate, and associate degree programs at the main campus in Erie (2801) and other satellites (13) . The student population was comprised of 2249 full-time and 197 part-time undergraduate students along with 228 full-time and 127 part-time graduate students. Additionally, there were 13 municipal police academy students. There were 145 full-time and 93 part-time faculty. During the academic year, 847 total degrees were conferred in the following categories: Baccalaureate 489, Associate 97, Masters 204, UG certificates 45 and Grad certificates 12. The University offered 13 graduate programs, 65 undergraduate majors with 70 minors, and 9 associate degree programs. 11970699 0 23583315 Auxiliary services includes student housing, foodservice, the University bookstore and the University's conference center on the Main campus. The total student population in University housing on the Main campus was 1,705 for the 2022-23 fiscal year. 1,531 students at the Main campus had paid meal plans while many other students and employees dine in University facilities on a pay-as-you-go basis. The University maintains a bookstore on the Main campus. The University has a conference center facility at the Main campus and regularly hosts outside groups and organizations. 62322871 10056704 4180429 All other program related activities. 62322871 10056704 4180429 142555024 1 1 0 0 0 0 1 1 0 1 1 0 0 0 1 1 0 1 1 1 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 1 199 0 1 1744 1 1 1 1 CJ EI 0 0 0 1 1 0 0 0 0 0 0 X 26 25 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 PA X Michael E Heller 8148242390 501 East 38th Street Erie PA 165460002 Getz Kathleen A President and Board of Trustees 45 0 X 381212 0 40694 Veitch Dionne N VP of Enrollment 45 0 X 122321 0 113602 Heller Michael E Vice President of Finance 45 0 X 169472 0 30370 Martin John J CVC HIDTA Executive Director 45 0 X 190045 0 0 Newhook Robin L Associate Professor of PA Program 45 0 X 125079 0 62991 Hartman Gary Deputy Director of HIDTA 45 0 X 181822 0 0 Ferry Steven J Central Valley HIDTA Program Manager 45 0 X 157473 0 8661 Belfiore Phillip Professor of Education, Graduate 45 0 X 131952 0 29115 Bollheimer Meredith General Counsel, VP of Legal Affairs 45 0 X 127242 0 31210 Zirkle Laura M Vice President of Student Life 45 0 X 125126 0 31844 Britt Jeanette VP for Technology and CIO 45 0 X 137511 0 12427 Kelsey Jane M Assistant VP for Finance/Treasurer 45 0.00 X 119508 0 17461 Breckenridge James G Board of Trustees 1 0 X 0 0 0 Cipriani Dario Board of Trustees 1 0 X 0 0 0 Courneen Sister JoAnne K Vice Chair of the Board & Interim Co-Chair of the Board of Trustees 1 0 X 0 0 0 DeFrancesco Brian C Board of Trustees 1 0 X 0 0 0 Durkin Rosemary D Secretary of the Board of Trustees 1 0 X 0 0 0 Fiedler Stephen J Treasurer of the Board of Trustees 1 0 X 0 0 0 Garzon Paula E Board of Trustees 1 0 X 0 0 0 Gibson Ryan Board of Trustees 1 0 X 0 0 0 Jeffress Andrea T Board of Trustees 1 0 X 0 0 0 Johnson Matthew W Board of Trustees 1 0 X 0 0 0 Kern B Scott Board of Trustees 1 0 X 0 0 0 Kubiak Lev J Board of Trustees 1 0 X 0 0 0 Langer John H Board of Trustees 1 0 X 0 0 0 Lilly Brian M Board of Trustees 1 0 X 0 0 0 Maher Yvonne J Vice Chair of the Board & Interim Co-Chair of the Board of Trustees 1 0 X 0 0 0 McAndrew Marc Board of Trustees 1 0 X 0 0 0 Moran Daniel J Board of Trustees 1 0 X 0 0 0 NeCastro Joseph G Chair of the Board of Trustees 1 0 X 0 0 0 Pietraszek Margaret M Board of Trustees 1 0 X 0 0 0 Salvia Mark J Board of Trustees 1 0 X 0 0 0 Saxon John W Board of Trustees 1 0 X 0 0 0 Schaaf Mary E Board of Trustees 1 0 X 0 0 0 Spadofor Christine J Board of Trustees 1 0 X 0 0 0 Wenig Barbara P Board of Trustees 1 0 X 0 0 0 Weschler Patrick J Board of Trustees 1 0 X 0 0 0 1968763 0 378375 29 0 1 0 Parkhurst Dining Services 285 E Waterfront Drive Homestead PA 15120 Dining Services 8488106 Aramark Corporation PO Box 978839 Dallas TX 753977883 Maintenance 4940097 Velocity Network 121 West 10th Street Erie PA 16504 Managed IT Services 542073 McCreary Roofing 1404 East Avenue Erie PA 16503 Roofing repairs 422771 Ellucian 62578 Collections Center Drive Chicago IL 60693 Software and Services 344317 8 0 0 3792 0 14046012 1911693 0 15961497 Tuition & Fees 611310 99400534 99400534 0 0 Auxiliary Services 611310 23583315 23583315 0 0 Government Grants & Contracts 611310 1665816 1665816 0 0 Other Educational Related 611310 1514927 1514927 0 0 Athletics 611310 346826 346826 0 0 652860 581743 71117 0 127164278 1388766 0 0 1388766 0 0 0 0 20431 0 0 20431 430106 45819 76704 341944 353402 -296125 57277 0 -10078 67355 30677205 1706697 26662654 1151214 4014551 555483 4570034 0 0 4570034 383580 3792 208504 175076 0 175076 0 149337359 127093161 61039 6221662 X 4152 4152 58919591 58919591 0 0 0 0 1210316 132892 987785 89639 6459 6459 0 0 26779725 24590939 1920309 268477 918206 816285 83924 17997 7808931 6942140 713736 153055 1957071 1781735 171965 3371 0 0 0 0 91387 0 91387 0 120310 0 120310 0 0 0 0 0 0 0 43856 0 43856 0 15147289 14181497 811098 154694 657779 103996 553783 0 4316991 3817577 470812 28602 3710074 3102379 553968 53727 0 0 0 0 5432633 4932581 391302 108750 2292832 2204245 88587 0 0 0 0 0 1000708 791366 115583 93759 3403226 3403226 0 0 0 0 0 0 6149528 6149528 0 0 958644 127567 831077 0 Cost of Sales - Dining, Bookstore & Production 8676638 8676638 0 0 Bad Debts, Write-offs, and Collections 667040 667040 0 0 UBIT Advertising Expense 78229 78229 0 0 Athletic Team Expenses 598554 598554 0 0 589779 526408 63371 0 151539948 142555024 8012853 972071 0 0 10211066 16249909 12493681 3887502 2513647 540598 0 0 0 0 963674 540826 280257 347424 830045 1330559 203922695 96891367 112258126 107031328 34459660 34439392 0 0 0 0 0 0 0 3934961 174010156 168302499 9972213 8584448 0 0 3316235 3614300 44055387 42992164 0 0 0 0 8242726 8097396 0 0 1235705 4922336 66822266 68210644 X 80299453 74050468 26888437 26041387 107187890 100091855 174010156 168302499 -2202589 -4893446 0 0 0 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 17 0 0 0 1 0 0 0 1 0 0 X X X 0 34559382 333248 -56337 1413097 0 0 33423196 38484278 1176627 -3790437 1311086 0 0 34559382 30409331 494041 8870107 1286201 0 0 38487278 30554130 1395135 -206086 1333848 0 0 30409331 31770061 622353 -483307 1354977 0 0 30554130 0.2497 0.6278 0.1225 1 0 0 1875051 1875051 0 146306094 61360918 84945176 0 0 0 0 0 38741051 30684597 8056454 0 17000499 4845852 12154647 107031328 0 Operating Lease Liability 3819134 Federal Government Advance for Student Loans 596730 Student Deposits 483011 Student Aid - Other Sources 23461 4922336 X 85954164 -4893446 0 0 451664 -4441782 90395946 21822 58919591 58941413 149337359 93050199 0 0 0 451664 451664 92598535 21822 58919591 58941413 151539948 Schedule D, Part II, Line 9 The University does not derive any revenue from this agreement beyond the original $1 it received in entering into the agreement. As stated in question 7 above, there are no expenses exclusively or directly related to the easement agreement. Being that the 16.89 acres of the easement was part of the land purchased by the University, the fair market value of the easement is included on the University's books and financial statements as property, plant, and equipment. There is not a separate footnote in the University's financial statements addressing the easement agreement. Schedule D, Part III, Line 1 Collections of works of art, historical treasures and similar assets are not capitalized in as much as the items are preserved and cared for continuously. Contributions of collection items are not reported in the financial statements. The University's collections consist primarily of paintings, sculptures, and other works of art, books, and antique furniture. Schedule D, Part III, Line 4 The observance and study of works of art and historical treasures are part of the educational curriculum in many disciplines. The University maintains a collection to further and enhance the educational experience in these disciplines, which is the primary reason for the University's exempt purpose. Schedule D, Part V, Line 4 The University's endowment consists of individual funds established for a variety of purposes. The endowment includes both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments (board-designated endowment funds). Many of the individual funds established provide scholarships to students. Several other endowments support academic programs, the library, the performing arts center and other areas of the University. Schedule D, Part X, Line 2 The Financial Accounting Standards Board (FASB) provides guidance for how uncertain income tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the University's tax returns to determine whether the tax positions are more-likely-than-not of being sustained when challenged or when examined by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and asset or liability in the current year. For the year ended May 31, 2023, management has determined there are no uncertain tax positions. Schedule D, Part XI, Line 2d This line includes various items that are recorded as part of net revenues on 990 Part VIII: Loss on Disposition of Assets, Rental Expenses, Fundraising Expenses, and intercompany eliminations entries for Endowment. Schedule D, Part XI, Line 4b Financial assistance awarded to students of the institution which is recorded as contra-revenue in the audited financial statements. Schedule D, Part XII, Line 2d This line includes various items that are recorded as part of net revenues on 990 Part VIII; Loss on Disposition of Assets, Rental Expenses, Fundraising Expenses, and intercompany elimination entries for Endowment. Schedule D, Part XII, Line 4b Financial assistance awarded to students of the institution which is recorded as contra-revenue in the audited financial statements. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 The University's practice is to fully disclose our nondiscrimination policy in the course catalog and on the University's public website. Schedule E, Part I, Line 6 The University receives an Institutional Assistance Grant from the Pennsylvania Higher Education Assistance Agency (PHEAA). This aid is determined by the number of Pennsylvania state grant recipients enrolled at the University during the current academic year. Central America and the Caribbean 0 0 Investments 5460739 Europe (including Iceland and Greenland) 0 0 Program Services Study Abroad MC Ireland operations ceased 5/31/22 and final dissolution of the entity occurred 6/19/23. 0 0 0 5460739 0 0 1 1 0 0 Admin & Football Golf Outing 47977 3792 44185 0 13047 11852 0 0 9429 Football And Men's Lacrosse - Popcorn Sale 22495 0 22495 0 0 0 0 0 0 2 23730 0 23730 1750 0 0 675 208 0 94202 3792 90410 1750 13047 11852 675 208 9429 36961 53449 1 University funded financial assistance based on need and merit provided to students attending Mercyhurst University. 2760 58919591 0 Schedule I, Part I, Line 2 Most students receiving need-based financial aid from the University must complete an annual Free Application for Federal Student Aid (FAFSA) form and make satisfactory academic progress in order to retain their aid. Reviews are also conducted on each student to ensure that their grades, academic standing, and major continue to qualify them for the financial aid. These review processes are conducted annually at the end of the University's spring term, prior to the renewal of financial aid packages for the students. X X 1 1 X X 0 0 0 0 0 0 0 0 0 Belfiore Phillip Professor of Education, Graduate 131952 0 0 0 0 0 8043 0 21072 0 161067 0 0 Bollheimer Meredith General Counsel, VP of Legal Affairs 126222 0 0 0 1020 0 9888 0 21323 0 158453 0 0 0 Ferry Steven J Central Valley HIDTA Program Manager 157473 0 0 0 0 0 8661 0 0 0 166134 0 0 0 Getz Kathleen A President and Board of Trustees 380192 0 0 0 1020 0 21175 0 19518 0 421905 0 0 0 Hartman Gary Deputy Director of HIDTA 181822 0 0 0 0 0 0 0 0 0 181822 0 0 0 Heller Michael E Vice President of Finance 169472 0 0 0 0 0 9651 0 20719 0 199842 0 0 0 Martin John J CVC HIDTA Executive Director 190042 0 0 0 0 0 0 0 0 0 190042 0 0 0 Newhook Robin L Associate Professor of PA Program 125079 0 0 0 0 0 0 0 62991 0 188070 0 0 0 Veitch Dionne N VP of Enrollment 122321 0 0 0 0 0 7040 0 106562 0 235923 0 0 0 Zirkle Laura M Vice President of Student Life 125126 0 0 0 0 0 9925 0 21919 0 156970 0 0 0 Schedule J, Part I, Line 1a The President is permitted to fly first class while certain other VPs are permitted if the trip is either cross country or international in nature. The University did not use any charter travel during the reporting period. Social Club Dues - The President, as part of her contract, and certain other VPs received social club memberships. This benefit was considered taxable and taxed accordingly. A 2016 Series CEHEBA 251536711 295435CD1 2016-12-01 25618931 See Part VI 1 0 0 B 2017 Series CEHEBA 251536711 295435CE9 2017-07-01 30485977 See Part VI 0 0 0 A 8920000 2255000 25831112 1224792 0 0 339088 0 0 0 0 0 1 1 1 1 B 450000 0 31000798 2693497 0 0 609708 0 0 24498146 0 0 2018 0 0 1 1 A 0 0 1 1 0 0 0 0 0 0 1 B 0 0 1 1 0 0 0 0 0 0 1 A 0 1 0 1 0 0 0 0 1 B 0 1 0 1 0 0 0 0 1 A 1 B 1 Schedule K, Part I, Column f-12/01/2016 25,618,931 2016 Series CEHEBA On December 1, 2016, the University issued University Revenue Refunding Bonds through the City of Erie Higher Education Building Authority (Authority). The 2016 Bond proceeds were used to finance a project consisting of (a) current refunding of all of the 2004 Series A and B Bonds; (b) the advance refunding of all of the 2008 Bonds; (c) the funding of a debt service reserve fund; and (d) the financing of the costs relating to the issuance of the 2016 Bonds. Schedule K, Part I, Column f-07/01/2017 30,485,977 2017 Series CEHEBA On July 1, 2017, Mercyhurst Student Housing, LLC, a Pennsylvania limited liability company, issued $31,435,000 Revenue Bonds through the Authority. The 2017 Bond proceeds were used to finance a project consisting of (a) financing all or a part of the costs of acquiring, developing, constructing, furnishing, and equipping an approximately 148,000 square foot residence hall comprising approximately ninety (90) suites containing approximately 350 beds, and related student facilities, on approximately four acres of land owned by and on the Erie campus of the University, (b) funding capitalized interest, (c) funding a debt service reserve fund, and (d) pay all or a portion of the cost of issuance of the Series 2017 Bonds. Schedule K, Part II, Line 3-12/01/2016 25,618,931 2016 Series CEHEBA The difference between Part II, Line 3, A and Part I, A, column e is cumulative interest earnings on the bond trust accounts for the Fiscal Year ending May 31, 2023. Schedule K, Part II, Line 3-07/01/2017 30,485,977 2017 Series CEHEBA The difference between Part II, Line 3, B and Part I, B, column e is cumulative interest earnings, net of expenses on the bond trust accounts for the Fiscal Year ending May 31, 2023. Schedule K, Part IV, Line 2c-12/01/2016 25,618,931 2016 Series CEHEBA 12/01/2016 - $25,618,931 - 2016 Series - The date that the rebate computation was performed December 1, 2016 to May 31, 2021. As of the interim computation date of May 31, 2021, the report indicated that there was no rebate liability. The first IRS five-year computational due date is 12/01/2021 for the 2016 Series Bonds. Schedule K, Part IV, Line 2c-07/01/2017 30,485,977 2017 Series CEHEBA Part of the 2016 Series Bond Issue was an advanced refunding of the 2008 Series Bonds, which were placed in a yield restricted escrow fund, until the call date of September 15, 2018. A final rebate computation was performed through the call date of September 15, 2018, which indicated no cumulative rebate liability as of the September 15, 2018 Final Rebate Computation Date. Schedule K, Part IV, Line 6-12/01/2016 25,618,931 2016 Series CEHEBA Part of the 2016 Series Bond Issue was an advanced refunding of the 2008 Series Bonds, which were placed in a yield restricted escrow fund, until the call date of September 15, 2018. A final rebate computation was performed through the call date of September 15, 2018, which indicated no cumulative rebate liability as of the September 15, 2018 Final Rebate Computation Date. H Jack Langer Heating and Plumbing Trustee John H Langer is the owner of H Jack Langer Heating and Plumbing 138712 Heating and Plumbing Services 0 Form 990, Part III Schedule O contains a response and the box at the top of page 2 should be checked Form 990, Part VI, Section A, Line 2 Joseph G Necastro (Trustee) has a family relationship with Mark J Salvia (Trustee). Form 990, Part VI, Section B, Line 11b The form 990 for Mercyhurst University for the current fiscal year was reviewed in detail by the Vice President for Finance, and by an independent accounting firm prior to filing with the IRS. In addition to management's review of the Form 990, the Board of Trustees authorized the Audit Committee of the Board to review and approve the final Form 990, including all required schedules, prior to the filing of the return with the IRS. Form 990, Part VI, Section B, Line 12c Mercyhurst University has a written Conflict of Interest Policy. All Trustees and members of the President's Cabinet are required to disclose to the Board of Trustees any possible conflict of interest at the earliest practical time. Further, the Trustee shall abstain from the discussion of, and abstain from voting on, such matters under consideration by the Board of Trustees or its committees. Each Trustee and member of the President's Cabinet shall complete and sign by the Spring Board meeting each year a conflict of interest disclosure form provided annually by the Secretary of the Board of Trustees. The annual conflict of interest disclosure forms are reviewed first by the Chair of the Board of Trustees, who also serves as Chair of the Executive Committee and by the full Executive Committee of the Board of Trustees typically at its Fall meeting. Copies of the annual conflict of interest disclosure forms are provided to the Executive Committee of the Board of Trustees, the Chair of the Board of Trustees, The Secretary of the Board of Trustees, the Chair of the Committee of the Audit, the external audit firm, and the President of the University. Form 990, Part VI, Section B, Line 15 The Mercyhurst Board of Trustees follows the recommendation of the Association of Governing Boards of Colleges and Universities among other leading authorities in our industry when dealing with presidential compensation and therefore, adheres to best practices established. The process/policy for setting presidential compensation at Mercyhurst University is the following. At Mercyhurst University, The Committee on Compensation of the Board of Trustees is responsible for the compensation-setting function of the President. The committee consists of no fewer than three trustees appointed by the chair of the board, who will also name a chair and vice chair. These trustees must be independent, without a conflict of interest as it relates to this area and may not have been employed by Mercyhurst University in the last five years. No member may be an executive of Mercyhurst University. Continuously throughout the year, the Committee on Compensation evaluates the President's performance for the fiscal year-end and conducts a formal review at least once a year. The committee reviews the president's performance in light of the university's goals and objectives. In addition, the committee reviews the President's compensation to ensure that his/her compensation complies with rules governing tax-exempt universities described in the Internal Revenue Code, complies with compensation rules and regulations promulgated by any other regulatory agency or legislative authority, and aligns appropriately with compensation levels at comparable universities. They use this review as the basis for recommendations on the president's compensation. The committee negotiates the terms of the (new or renewed) president's contract and increases in compensation level, elements of the compensation package, and structure. The recommendation is then presented for approval of the full board. At this time, the committee also requests the President to provide a list of goals and objectives for the institution and for the office of the president for the forthcoming year. This document provides the baseline used in evaluating the performance of the President. This request is followed up by a request of the Committee on Compensation to the President to prepare a report that assesses progress on each on the annual and standing objectives presented in the report. Form 990, Part VI, Section C, Line 19 Mercyhurst University's governing documents, conflict of interest policy, and financial statements are made available to the public upon request. Form 990, Part IX, Line 11g $3,670,523 of the expenses for other services are related to the maintenance contract with Aramark. $8,495,673 is related to contract service for Grants and Institutes. The remaining $2,981,093 is related to general contract services for the University. Mercyhurst Student Housing LLC 501 East 38th Street Erie PA 165460002 821588242 Student Housing PA 2441123 30255337 N/A WB HIDTA LLC 501 East 38th Street Erie PA 165460002 821368498 Assist Enforcement in High Drug Trafficking Areas PA 0 0 N/A Atlanta Carolinas HIDTA LLC 501 East 38th Street Erie PA 165460002 364910504 Assist Enforcement in High Drug Trafficking Areas PA 0 0 N/A CVC HIDTA LLC 501 East 38th Street Erie PA 165460002 371980682 Assist Enforcement in High Drug Trafficking Areas PA 0 0 N/A